LLQP Accident & Sickness · Component 2.1 · 30% of the exam
The waiting (elimination) period in a disability policy is:
- AThe time between filing the claim and the insurer's first payment
- The period after disability begins during which no benefits are paid
- CThe contestability period during which the insurer may void the policy
- DThe time between the application and the policy taking effect
Correct answer: B) The period after disability begins during which no benefits are paid
The waiting period functions like a deductible in time. Longer waiting periods lower premiums. Because benefits are paid at the end of each month, the first cheque arrives roughly a month after the waiting period ends.
Why the other options are wrong
- AClaims processing time is separate from the elimination period.
- CContestability concerns misrepresentation, not benefits.
- DThe policy takes effect on delivery; the waiting period runs from disability.
Exam tip
Waiting period = time deductible. First payment ≈ waiting period + one month.
Common mistake
Telling a client with a 90-day waiting period that the first cheque arrives on day 90.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.